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How is the Monthly Recurring Charge (MRC) calculated during a plan change?
How is the Monthly Recurring Charge (MRC) calculated during a plan change?
NOTE:
The Monthly Service Charge for each plan is based on the number of days in the billing period it is active.
To determine how the Monthly Recurring Charge (MRC) is determined for a plan change, perform the following steps:
1. Divide the Monthly Service Charge by the number of days in the billing period to get the daily Service Charge.
NOTE:
There can be from 28 to 31 days in the billing period depending on the calendar month. Usually, the number of days in the billing period will equal the number of days in the month when the billing period begins. For example, billing periods beginning in March and ending in April will have 31 days, because there are 31 days in March.
2. Multiply the daily Service Charge by the number of days the plan was active to get the partial Monthly Service Charge.
3. Repeat this for each plan that was active in the billing period to determine the total Monthly Service Charges for the billing period.
Example:
  • You opt to change plans from a $50 Monthly Service Charge to a $100 Monthly Service Charge effective on 04/10/04.
  • Next Cycle End Date = 04/15/04
  • Previous Cycle End Date = 03/15/04
Date Calculations
  • The billing period runs from 3/16/04 to 04/15/04, or 31 days
  • The old plan is active from 03/16/04 to 04/09/04, or 25 days
  • The new plan is active from 04/10/04 to 4/15/04, or 6 days
Old Plan
  • $50 Monthly Service Charge divided by 31 days = $1.61
  • $1.61 x 25 days =$40.25
  • $50 Monthly Service Charge already billed minus $40.25 partial Monthly Service Charge = $9.75 credit
New Plan
  • $100 Monthly Service Charge divided by 31 days = $3.23
  • $3.23 x 6 days = $19.38 charge
Total Monthly Service Charges for the Month
$100.00 Monthly Service Charge for service for the next month on the new plan
$19.38 Partial Monthly Service Charge for the new plan in this billing period
$9.75 Partial Monthly Service credit for unused portion of the old plan in this billing period.
------------
$109.63 Total
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